On Thursday, foreign institutional investors (FIIs) sold shares worth $188 million, while domestic institutional investors bought shares worth $110 million, according to provisional data on the exchanges. FIIs have been net sellers in each of the last four sessions now. However, YTD, FIIs have bought more than $13 billion.
On Thursday, the 30-share BSE Sensex ended lower by 349.99 points, or 1.33%, at 25,999.34, while the broader 50-share Nifty declined 115.80 points, or 1.47%, to close at 7,748. On Wednesday, Dow Jones closed 1.06% lower amid concerns of a recession in Europe.
The market fall was led by Hindalco, which fell more than 5%. Among other Sensex scrips, M&M (-4.41%), Sesa Sterlite (-4.09%), Tata Steel (-3.57%) and Tata Power (-3.29%) were the major losers.
FIIs investments are showing signs of slowing down in emerging markets.
FII investments slowed down across the emerging markets with Taiwan, South Korea and Indonesia witnessing large outflows in September. Interestingly, listed funds continued to deploy capital in some of these regions, indicating selling from other participants. FIIs continued to invest into India, although at a slower pace. India-focused listed funds remained positive on the back of Asia ex-Japan funds. EM-focused activity remained lackluster even as India-dedicated ETFs attracted capital. Estimated asset allocations in the EM region were down approximately 6% during the period with Russia recording an asset allocation drop of 12%, Kotak Institutional Equities noted in its foreign fund-flow tracker.
Among peers, all Asian markets edged lower on Thursday.
The Nikkei (-2.22%), Hang Seng
(-1.03%), Kospi (-0.37%), Jakarta Composite (-0.23%), Shanghai Composite (-0.72%) and Taiwan Taiex (-0.25%) ended lower.
Back home, 26 of the 30 Sensex stocks ended in the red on Thursday. In the broader market, breadth was weak with 2,188 stocks traded on the BSE ending lower compared with 748 advances.
Most of the 12 BSE sectoral indices ended in the red. The BSE Consumer Durables (-4.25%), BSE Power (-2.91%), BSE Metal (-2.28%) and BSE Auto (-2.09%) were among the major losers.
The NSE cash turnover on Thursday stood at R17,339 crore, while the turnover in the F&O segment stood at R2.41 lakh crore.